Change Management - Achieving Benefits Realisation
Updated: 5 days ago
Change disruption is the order of the day. Rapidly changing customer buying habits, access to new technology and social media are accelerating the way organisations need to adapt to change to remain competitive or even survive. Any organisation investing in improvements needs to ensure fast, effective and efficient benefits realisation to ensure positive business operating performance.
“Some organisational leaders see their role in a major improvement and change as starting with signing the finance approval and finishing with sending the briefing e-mail with an attached PowerPoint presentation. A while later they wonder where it all went wrong when there is no ROI” ~ Peter Gallagher
The lifespans of big companies are getting much shorter*:
1. The 33-year average tenure of companies on the S&P 500 in 1965 narrowed to 20 years in 1990 and is forecast to shrink to 14 years by 2026
2. The time for a typical Fortune 500 company to reach a $1B was 20 years. Now $1B is being achieved within 18 months
3. With changing technology and customer preferences, disruption will continue
“Leadership see their role in a major organisational improvement and change starting with signing the finance approval and finishing with sending the briefing e-mail with an attached PowerPoint presentation. A while later they wonder where it all went wrong when there is no ROI” ~ Peter F Gallagher
As organisations invest to improve or adapt to change disruption, their strategy will define the new direction and a portfolio of programme and projects will be created to close gaps or support the future direction. These improvement programmes and projects will impact the organisation, its processes, systems and most importantly the employee. Employees are an organisation’s key asset and offer core competitive advantage. Treat them well during a change and develop them, so they can aspire and with the right strategy and leadership you can become a global leader.
To ensure the change programme and project provide ROI benefits delivery and improved operating performance a structured approach to change should be embraced. A structured Change Management Framework will support managed change and reduce firefighting. From the start, it can ensure the Change programme and projects are aligned to strategy, through to Change Adoption that Sustains the Change. Key elements such as effective and proactive sponsorship are put in place and the organisation’s vision is aligned with the employee perspective in terms of the ‘WIFM’ factor and subsequent resistance. Communications can have targeted messages, the organisation can be prepared for change, and the future skills and behaviours can be developed.
Typically, what happens is that leadership see their role in a major organisational improvement and change starting with signing the finance approval. They then send an email to the employees announcing the project, followed by sporadic updates during the programme and project life-cycle. Organisation Change Readiness Assessment (CRA) and Change Management is another briefing e-mail with an attached PowerPoint presentation outlining the project. Leadership decisions on early programme and project budget overspends tend to reduce the critical employee training and development budget. As a result, employees will lack the competencies and new behaviours to deliver the key part of the change. Meanwhile, leadership will wonder why the implementation of a critical organisation change to ensure survival all went wrong.
The investment in a Change Management Framework can provide a structured approach and manage the change to deliver successful change and benefits delivery, focusing on:
1. Change Project Triple Constraint
3. Improved Business Performance
Peter F Gallagher is a Change Management Global Thought Leader, Expert, International Speaker, Author and Leadership Alignment Coach.
Ranked #1 Change Management Global Thought Leader: Top 50 Global Thought Leaders and Influencers on Change Management (May 2020) by Thinkers360.
Business Book Ranking: Change Management Pocket Guide - Leadership of Change® Volume 2, ranked within the top 50 Business and Technology Books (Jan 2020) from Thinkers360 Thought Leaders.