Managing change is a critical organisational capability. Claire Clayton MAICD, founder and managing director of Blue Seed Consulting, and also a director of the Cure Brain Cancer Foundation, and Phil Gray, a director and lead consultant at Blue Seed, explain the skills, tools and structures boards should know to execute successful change initiatives.
1. Integrate change management into strategic planning
Governing progress towards sustainable success and strategy realisation requires an understanding of organisational change- management principles. Directors should aim for an enterprise-wide single view of change, which highlights the downstream impacts of change driven by investment, business, external factors, regulation and seasonality.
The board should look for how changes are prioritised and communicated. While directors are responsible for agreeing on strategic priorities, executives should break these down into prioritised initiatives. Knowledge is often not shared beyond leadership team discussions. Communicating this more broadly can help teams to manage their energy more effectively.
2. Assess, measure and report
It is crucial for the board to ask how the organisation identifies and addresses the cumulative impact of change on employee wellbeing and productivity, and what measures are taken to sustain engagement and morale during continuous transitions. Is management seeing and communicating any signs of employee overload or resistance? Are there support systems to aid in the adjustment? Is this information being used to sequence change activities?
The board must understand the frequency/volume of introduced changes — and the costs and benefits. Mechanisms should be used to measure and report on the adoption and benefit realisation of change initiatives. Governance needs to be updated to address any gaps in the reports.
3. Involve employees in the change
A lack of willingness and alignment for the purpose can undermine even the most robust strategy. Understanding the approach to managing employee resistance and fostering engagement during change is crucial for assessing the potential success of the initiatives. Directors should look for specific examples and formal processes to elicit and act on employee feedback.
Increasing buy-in and reducing employee resistance during strategic initiatives is essential for successful implementation. Directors should seek detailed insights into employees’ involvement in the change process, using tools including communication channels, engagement activities, feedback mechanisms, training and development.
4. Cultivate a change-ready culture
Before initiating a new strategy or executing significant organisational change, assessing how the existing culture can facilitate or impede the shift is imperative. A culture that supports change is critical for success and boards must lead from the top, showcasing that they can listen and adapt. Boards need to model how the organisation is optimising strategy execution to foster an environment where change can thrive.
By leveraging technology and digital tools, organisations can bolster change- management processes. These tools streamline change initiatives and enhance their effectiveness. Embracing digital solutions can create a culture that adapts to change more readily, paving the way for success in navigating evolving landscapes and achieving strategic objectives.
5. Develop change leadership
Change management is a structured approach focusing on managing an organisation’s human side of change. The aim is to ensure changes are implemented smoothly and successfully, resulting in lasting benefits for the business. This needs careful planning, communication and support at all levels to minimise resistance, reduce the risk of failure and increase the chances of overall success.
People are not usually upset by what is changing — they get frustrated by how change is managed. In times of change, people overwhelmingly want to hear those messages from their direct leader. Managers and leaders are often promoted to leadership positions based on tenure and technical expertise. The ability of the leader to discharge that responsibility well will require significant skills and capability in “leading change”.
As a board member, it is crucial to stay informed about the steps your organisation is taking to develop its change-leadership capabilities. Boards need to ensure the organisation is teaching leaders these skills and that these skills are being practised.
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