The Role of Leadership in Organizational Change
Understanding the Environment
A well-known McKinsey study shows that 70% of change programs fail; some experts even claim the percentage is higher. Those that have gone through an organizational change may not be shocked by that statistic.
For example, I was working with a senior leader on a digital transformation project who expressed extreme frustration with the change process. And understandably so, let’s be honest – change is messy and a personal experience for everyone involved. The good news is that leadership can improve this by better understanding the environment, igniting their vision for change, and communicating effectively.
Companies across the globe have undergone some form of digital transformation over the past two years to adapt to the changing business climate; because of this, companies have evolved to a more networking mindset of communicating instead of following the traditional hierarchal path to solving problems.
Looking through the lens of organizational change, this shift offers more insight into the company culture and how competing projects affect employees’ day-to-day jobs, which allows leadership to adjust sooner.
Additionally, Thijs Homan, a professor of Change Management, discussed in a TedTalk On-stage and off-stage behaviors, meaning there are behaviors in front of management and informal conversations happening among smaller groups. Nothing new here, right?
Well, an area that may not be focused on as much in organizational change is Off-stage behaviors which can uncover how people feel about a change impacting them in one way or another, as well as other personal changes that may affect their mindset through the transition. I remember observing a CFO performing a Gemba Walk (actual place of work) at a customer-facing location with frontline staff. The Gemba walk is excellent for leaders to get involved in off-stage conversations about change. He was surprised at how the continuous changes affected their performance and attitudes.
Conducting a stakeholder analysis, sending readiness assessment surveys to stakeholders, and performing Gemba Walks, become highly beneficial to understanding the environment before any transformational change.
Ignite Vision
Executives lead the direction of change by painting a compelling picture of the future and why it is essential to change now, including the risk of not making a change. Whether for digitization, expansion into new markets, or mergers & acquisitions, it will be crucial for senior leaders to IGNITE that vision of the future with optimism and honesty that can be expressed to all levels of the organization that inspire the desire for change.
Take the vision into action by establishing goals for:
Near-term
Intermediate-term
Long-term
Disseminating these goals through the organization so employees know what can be expected at each phase and how it is staying consistent with long-term strategies will help employees visualize the organization’s progress toward the company’s future vision.
Communicate
Harvard Business Review article points out that the open rate of emails is around 18%! Now some of you may be thinking, well, that is not shocking, and some may be in disbelieve because you believe all of your emails are read.
Communication is more than pushing out emails to the great abyss of the organization. It is about engagement. Being active and visible as an executive champion of change, communicating the need for change effectively, and leveraging middle management as change agents. Last year I worked with a client in an officer role that was a superb example of what “active and visible” means:
Engaged and communicated frequently with peers
Engaged and elicited feedback from the community
Visible organizationally wide as the champion
Accessible for quick decisions needed while keeping affected stakeholders in mind
Senior leaders cannot be everywhere, so this is where mid-level leaders come into play as change agents. They focus on listening, communicating, and providing feedback up and down the organization with leadership and the frontline. They are close to the work, have a relationship with the frontline staff, and above all, they are the first group to realize the benefits and the return on investment when the changes are in place.
Leading organizational change is not easy, which is why your role as a leader is vital to the success of the transformation; after all, you are dealing with people and behaviors.
