The most significant challenge confronting businesses is CHANGE.

With all the changes taking place within the business world, Change Management is now becoming one of the most important methods used by companies around the globe.

The most common examples of when change management is necessary in order to successfully achieve changes for the betterment of the organisation include:

• Implementation of a new technology
• Mergers & acquisitions
• Change in leadership
• Change in organizational culture
• Adapting to market changes
• Reaching new markets
• Rebranding
• Launching new products
• Times of a crisis

The Benefits of Organisational Change Management

Understanding the importance of successful change management is critical for any organisation's success.

Here are some important aspects to consider:

·        Adaptability: Organisations that effectively manage change are better positioned to respond to market developments and internal issues.

·        Employee Engagement: A well-executed organisational change management plan increases employee engagement and acceptance while decreasing resistance to change.

·        Corporate sustainability: Effective change management guarantees that corporate processes run smoothly throughout times of transition.

·        Competitive advantage: Organisations that accept change gain an advantage over their competitors.

Company "X" decided to implement an integrated sales system and delegate responsibility for specific types of clients to sales directors.

It was intended that the client would be served by a single director from the moment he or she made contact with the client until all of his or her obligations were met.

Unfortunately, this initiative was not successful at the beginning.

After analysing the reasons for the failure, it became clear that the following had not been provided:

• The directors in charge did not have the necessary training and knowledge appropriate for completing the task (people cannot perform a task if they do not know how).
• The financial systems lacked analytical information, and compensation plans did not align with the integrated sales strategy.
• Research programs concentrated on new technologies but did not include integrated customer service solutions.

Despite the great idea, it remained just empty words.

·        The company's management did not bother to prepare for the implementation of changes.

·        The company needed to integrate its sales processes, but there were no significant changes to support this decision.

·        The main flaw in the approach was that NO ONE was specifically ACCOUNTABLE for this strategic project.

Much of the issues and difficulties in implementing strategic changes is due to corporate characteristics that impede effective strategic dialogue and directly contribute to practices that have a negative impact on change strategy implementation.

Another major issue in companies is that their processes are complex, confusing, and unclear, causing user frustration and numerous errors.

Signs of a Problematic Business Process:

·       Individual sections of the business process are built and automated, but some operations must be performed manually.

Problems:

•  Employees from various departments must clarify information and obtain approvals in order to carry out the processes.
• Manual data reconciliation is required which is time-consuming and carries the risk of errors.
•  Gaps in automation and the use of disparate IT systems make it difficult to control the entire business process from start to finish.
• Redundant pre-initiation approvals (it is determined whether the company should perform a specific instance of the process.
• Involvement of a controller who monitors operational progress. He/She requires work reports and analysis; his/her activity adds no value and actually slows down the process.
•  Making decisions within a process when the manager cancels its execution or redirects the process to another branch. In this case, some operations have already been completed, requiring time and resources.
• Lots of rework, and repetition.
• In a business process, tasks are repeatedly returned to performers for revision, correction, and verification.

·        On average, such rework can consume up to 30% of employees' working hours.

All  the above problems cause a significant loss of process efficiency.

The process is excessively complex.

If business processes or task procedures are overly complex, they must be changed.

A clearly structured business process aims for SIMPLICITY.

Any work is amended over time to reflect the interests of various performers and departments, including the addition of new conditions, checks, transactions, and approvals.

If your processes have become overburdened with redundant operations, you should take notice.

To identify the biggest issues in an existing business process, use a whiteboard, gather all users from juniors to higher levels, and write down all possible steps directly on the whiteboard.

It is preferable to do this offline, but you can also use online forums.

The main goal is to involve all participants in the business process.

Any description of a business process should be:

•   Complete.

The process should describe in detail all of the actions required to achieve the result, as well as any potential developments, and conclude with the achievement of the initial goal.

•  Concise.

Despite the large amount of information used, it must be presented concisely, highlighting only the most important points.

• Implemented in standard notations.

Existing notations are intended to represent schemes that are understandable even to non-specialists.

• It should be approved by each user. Otherwise, the process will not function.
• It must be as clear as possible.

Finally, remember the following while implementing any kind of change:

·        Revolutionary change appears to be devastating, painful, and costly.

·        Evolutionary change is smaller, more gradual, and less painful.

A mid-sized manufacturing company decided to implement a new Enterprise Resource Planning (ERP) system to streamline operations, improve efficiency, and reduce costs.

The change was initiated due to outdated legacy systems causing inefficiencies and errors.

However, the implementation faced significant challenges, leading to delays, employee resistance, and operational disruptions.

Problems Encountered:

• Lack of Clear Communication:

• Employees were unaware of the reasons for the change and how it would benefit them. 
• Miscommunication between the leadership team and employees led to confusion and mistrust. 

• Resistance to Change:

• Employees were comfortable with the old system and resisted learning new processes.
• Fear of job loss due to automation and system efficiency.

• Inadequate Training:

• The training provided was rushed and not tailored to different departments' needs.
• Employees felt unprepared to use the new system, leading to errors and frustration.

• Poor Change Leadership: 

• The leadership team did not actively champion the change or address employee concerns. 
• Middle managers were not equipped to support their teams during the transition.

• Unrealistic Timelines:

• The project timeline was too aggressive, leaving little room for testing and adjustments.
• This resulted in system glitches and operational downtime.

• Solutions Implemented:

• Improved Communication Strategy
• Leadership launched a comprehensive communication plan, including town hall, emails, and FAQs, to explain the "why" behind the change.
• Regular updates were provided to keep employees informed about progress and address concerns.

• Employee Engagement and Involvement: 

• Employees were involved in the planning process through focus groups and feedback sessions. 
• Change champions were identified in each department to advocate for the new system and support their peers.

• Tailored Training Programs:

• A phased training approach was introduced, with role-specific training sessions.
• Hands-on workshops and simulations were conducted to build confidence in using the new system.

• Strong Change Leadership: 

• Senior leaders actively participated in the change process, demonstrating commitment and addressing concerns.
• Middle managers were trained in change management techniques to better support their teams.

• Revised Project Timeline: 

• The timeline was adjusted to allow for thorough testing, feedback, and adjustments.
• A pilot phase was introduced to test the system in one department before company-wide rollout.

• Outcomes: 

• Increased Adoption: Employees felt more confident and supported, leading to higher adoption rates of the new ERP system.
• Improved Efficiency: The new system streamlined operations, reducing errors and saving time.
• Enhanced Morale: Transparent communication and employee involvement reduced resistance and improved morale.
• Successful Implementation: The revised timeline and pilot phase ensured a smoother rollout with minimal disruptions.