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OUR INSIGHTS
Change is a process that begins with an event.
So often when we think about scaling or growing our companies, we think solely about the the goals we want to achieve – increased revenue; expanded market share; our EBITA, profitability and awards. To achieve our goals, we develop operational strategies, SOPs, capital acquisition strategies, and even an exit strategy. But why don’t we have a change strategy?
A change strategy is a strategic plan that outlines your organization’s approach to embracing, managing and leading through change. It outlines how your team will navigate change initiatives and provides direction on identifying catalysts, embracing shifts, and outlining the next normal of application.
The People Side of Change: Why is this important?
Any time your people are asked to do anything differently is considered a change event. This includes annual goals, changes in operational procedures and integration of new technologies – much less scaling and growth initiatives. In our 30+ years of experience in this area, we’ve repeatedly found that organizations who do not consider the impact of change on their people and plan accordingly have more difficulty adopting and sustaining successful change initiatives over time.
Harvard Business Review notes that 70% of organizational changes fail due to poor management and lack of alignment within the company structure (“Cracking the Code of Change”, Nitin Nohria and Michael Beer, HBR, May-June 2000).
It’s not enough to map out a process, you must consider what we call “The People Side of Change” and craft a strategic approach that includes equipping your leaders to embrace, manage, and lead through change. This creates better opportunities for ongoing, sustainable success across the organization.
What are the essential components to consider in crafting your organization’s change strategy?
We surveyed over 700 CEOs of scale-ready companies to discover the critical components necessary for leaders to be successful in the midst of change. The results were grouped into four core areas, which we have incorporated into our Leadership at Scale TM Framework: optimizing talent, creating a sense of belonging, promoting agility and innovation, and cultivating shared ownership.
1. Optimizing Talent
As organizations grow rapidly, their initial structure often becomes inadequate to handle the increased complexity. Without a change strategy, roles and responsibilities may become unclear, leading to inefficiencies and communication breakdowns. To combat this, it’s important to think through how roles and responsibilities will change and shift; while also considering communication strategies and guidelines that will adjust as the organization grows. Equally important is outlining how you plan to optimize your talent—specifically, how to ensure you have the right people, in the right position at the right time.
2. Creating a Culture of Belonging
Rapid growth can dilute an organization’s culture if not managed properly. A change strategy helps ensure that core values and culture are preserved and adopted across departments, which is vital for employee engagement and retention. According to a 2019 Gallup poll, organizations with strong, aligned cultures have 22% higher productivity and 21% higher profitability. Implementing a change strategy with organizational culture considerations ensures that your people remain aligned with the company’s culture and values, driving better performance.
3. Promoting Agility and Innovation
A change strategy prepares an organization to remain agile and innovative amid growth. This is crucial for staying competitive and responding swiftly to market changes. To achieve this, it is important for your people to adopt an approach of facilitative leadership and operate innovatively within their areas of expertise (or Zone of Influence). By encouraging your people at all levels to “lead from within”, you create a sense of autonomy and foster innovation.
4. Cultivating Shared Ownership
Change initiatives are oftentimes presented as “top down” mandates that do little to foster a sense of ownership at all levels of the organization. Being intentional about crafting and communication a sense of shared ownership across the organization encourages individual responsibility, fosters group accountability, and cultivates shared ownership. This ensures that everyone in the organization is taking responsibility for achieving shared goals, which enhances opportunities for long-term success.
We can all agree that organizational success in any area hinges on the development and implementation of a sound strategy. Any change – especially changes involving growth and scaling – requires the development of a change strategy addressing each of the areas outlined above.
If you fail to plan; you plan to fail.
Failing to plan for and adopt a change strategy ensures that your organization is playing a game of Russian roulette with your change initiatives. The future of your organization rises and falls with its ability to successfully embrace, manage and lead through change. Ask yourself, are you willing to leave your success to chance?
