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A guide to change management

author

Lumin staff

published

Oct 10, 2024

categories

Cloud Basics

read time

5 mins

A guide to change management

Digital transformation proving difficult? We explain how to win hearts and minds so your staff can embrace change.

Table of Contents

  • 1. Why does digital transformation fail?

  • 2. What are the obstacles to change?

  • 3. Overcoming digital transformation obstacles

  • 4. Change means productivity losses

  • 5. How to build a change-ready culture

  • 1. Why does digital transformation fail?
  • 2. What are the obstacles to change?
  • 3. Overcoming digital transformation obstacles
  • 4. Change means productivity losses
  • 5. How to build a change-ready culture

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Your company has just invested millions in cutting-edge technology that promises to revolutionize how your team works. You’re ready to streamline, innovate, obtain next level productivity.


The software is installed, the systems are in place and yet – three months later, most of your employees are still downloading Microsoft Word files and emailing them to clients.


Change starts with technology, but a full digital transformation needs to come from the hearts and minds of staff.


Why does digital transformation fail?


A 2021 survey by McKinsey found that while plenty of companies attempt digital transformations, not all of them stick.


The key to success? Frontline staff.


The study found that when business leaders ensured frontline staff felt ownership over the change, the transformations had a 70% success rate.


This doesn’t mean CEOs and CTOs should be hands-off; it means the opposite. They should be in the weeds listening to staff suggestions and responding in a way that makes staff feel heard and respected. 


You can have the most sophisticated technology in the world; but if your team isn't on board, it's about as useful as a Ferrari without an engine.


What are the obstacles to change?


Before we can effectively manage change, we must first understand what we're up against. The barriers to digital transformation typically fall into three categories:


Psychological barriers to change


Human beings are naturally resistant to change. When faced with new technologies, employees often experience:


  • Fear of the unknown: will this make my job harder? Will I be able to learn it?
  • Comfort with existing systems: if it's not broke, don’t fix it
  • Job security concerns: will this technology replace me or make my skills obsolete?
  • Learning anxiety: concerns about appearing incompetent during the change process

These psychological barriers can manifest as active resistance or passive non-compliance, both of which can significantly impede your digital transformation efforts.


Organizational barriers to change


Even when individuals are willing to change, organizational obstacles can still stand in the way:


  • Entrenched processes: years of "this is how we've always done it" creates deep-rooted habits that are hard to break
  • Legacy system dependencies: existing workflows may be tightly integrated with outdated systems
  • Middle management resistance: middle managers can obstruct change (either on purpose or accidentally) by communicating poorly between executives and frontline staff
  • Cultural inertia: organizations, like people, develop comfort zones that can be difficult to break out of

Practical barriers to change


Finally, there are the tangible, day-to-day challenges:


  • Time constraints: learning new systems takes time – a resource many employees feel they don't have
  • Short-term productivity dips: there's often a temporary decrease in efficiency as people learn new tools; something both frontline staff and middle management might fear
  • Resource limitations: training and support require investment, both in terms of money and personnel
  • Technical hurdles: compatibility issues and technical limitations can frustrate even the most willing adopters

Overcoming digital transformation obstacles


The first step in any successful change management initiative is to create and communicate a compelling vision for the future. This involves:


Articulating the "why"


Don't just announce changes; explain the reasoning behind them. For example, instead of simply stating, "we're moving to a new CRM system", explain how it will solve current pain points and create new opportunities.


Speak directly to the negative feedback frontline staff have delivered in the past, e.g.: “I know a lot of you were struggling with setting up workflows in [old software]. We’ve chosen to move to [new software] as it’s better designed for this task.” 


Connecting to the bigger picture


Show how the change aligns with the company's mission and values. You can go wide with this, e.g.: “we’ve chosen to support a local business” or “we emphasize ambition and progressive attitudes at our company, and think this new software is a future-forward step”.


Help employees see the tools they use as a reflection of the company’s vision and mission.


Using storytelling


Paint a vivid picture of the future that awaits. The transition period might be chaotic, but if you paint the green grass on the other side employees will strive to get there.


You can do this by sharing success stories from other companies or departments that have undergone similar transformations, or by checking in throughout the process to show how far the transformation has come.


Change means productivity losses


Energy cannot be created nor destroyed, only transformed. There is a set limit on energy available from your staff; when they pour it into adopting new technologies, you will need to accept an absence of that energy in the rest of their output.


To successfully lead change in the workplace, you need to communicate to staff that this is understood and accepted. The fear of not maintaining productivity will likely scare many staff members into sticking with technology they already understand.


Communicating that there will be a temporary dip as they get up to speed will give staff the energy they need to adopt change enthusiastically.

How to build a change-ready culture


Change is a constant. Undergoing digital transformation isn’t a one-time thing; if you’re looking for long-term growth and sustainability, staying on top of systems should be a priority. But how do you ensure staff are always at the ready for new tools?


Again, it’s about energy. Staff need to have enough to adopt change when required. There are a multitude of ways to do this, but here are a couple:


Schedule regular change opportunities


Encourage personal development; maybe an hour or two a week is set aside for them to upskill in an area of their choice. This means they’re accustomed to taking time out to learn, so when a new system pops up they know exactly when they can start learning about it.


Let staff lead change opportunities


Product updates or monthly catch-ups are a great way to check in and build energy for change. What’s been going well? Are there any tools that might help you with your tasks? Is there something the company’s trialing? Even if these tools are a no-go, keeping staff keen to experiment can make learning new tools exciting.


Allow room for failure


When you mess up with new tech it can feel extremely unmotivating. Shame, fear or dread of making a huge mistake can sap all strength from someone trying to adopt new technology. Establishing that mistakes will be made and questions are welcome will go some way to stopping the total energy-sap of failure.


Members of the leadership or change management teams being open about their struggles and mistakes with the new technology can also set an example of being a fail-safe zone.


Change management is an ongoing journey, particularly when it comes to digital transformation. But as technology continues to evolve, building adaptability as a core competency becomes increasingly crucial.


As IT leaders, your role extends beyond technical implementation. You need to be agents of change in every regard – physical, emotional, thermodynamic.


Because ultimately, successful digital transformation isn't just about implementing new technologies; it's about empowering people to embrace and effectively utilize these new tools.


By focusing on both the technical and human aspects of change, you can create workplaces that don't just adapt to the future, but actively shape it.

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