Change can be hard for some…
But the reality is that change is inevitable. In all aspects of life, both personal and
professional.
How we deal with it is what is important (life is 10% what happens to you and 90% how
you react to it!)
Why Change Management Matters in Organizations
As it relates to organizational change of any kind, the effectiveness with which leaders
manage this change is directly related to many factors that drive organizational results.
Consider some of these glaring statistics:
The Impact of Poor Change Management
Employee Impact:
42% of companies cite a lack of employee buy-in as a major
contributor to change failure, and 54% of change-fatigued employees are actively
considering leaving their jobs—a stark productivity and retention risk.
Financial Outcomes:
Effective change management can yield 35% higher ROI on
initiatives, and conversely, poorly managed change can cost 6–10% of annual revenue, and
employee resistance alone can sap up to 30% of productivity.
And here’s why this matters…
Leadership commitment, frequent communication, and employee involvement are
critical for successful change. Nearly 94% of
executives agree that people and culture are key drivers.
Common Organizational Changes That Require Strong Change Management
Some examples of change that you may have experienced, and must be effectively
managed, include:
- A department / division reorganization
- A leadership change
- Re-alignment of roles and responsibilities
- Changes in policies or procedures
- Mergers and Acquisitions – integrating another organization (and its culture!) into your
organization.
I’m sure there are many others we could list here…
7 Essential Components of an Effective Change Management Framework
To lead change successfully, leaders should follow a structured framework. Here are the seven components of effective change management:
- Vision – communicate a clear and aligned vision for the organization
- Communication – communicate with clarity, consistency, and credibility
- Transparency – normalize uncertainty with transparency (tell them what you
know, and acknowledge what you’re not sure about) - Culture – proactively define new behaviors, rituals and values to shape the
culture - Engagement – lead with presence, empathy and follow-through
- Accountability – manage morale without avoiding accountability (while
rebuilding trust, expectations should remain high) - Reflection – in the spirit of continuous improvement, reflect on what went well,
what needs to be improved, what may have confused the team
The Role of Communication and Engagement in Change Management
While all the above components are important, I think great leadership starts with
communication and engagement. That is what builds trust, when you do it in a timely
and authentic way. Once you set that foundation, you can create new cultural norms
that bring the team together to drive greater performance, a better environment, and
ultimately improved results for the organization.
My Personal Experience with Change Management
From my own personal experiences, including over 30 years as a supply chain leader in
three fortune 50 organizations, coupled with 12 years as an entrepreneur, I have seen
my share of change!
Whether it’s a reorganization, or a change in the economic environment that results in a
business impact, I’ve always found that approaching them head on, with a problem-
solving, people focused, and a bias toward action, always prevails.
What are your experiences? What has worked and what maybe didn’t go so well that
you that helped you to learn and grow?
